PMB Technology
Posted: Mon Dec 07, 2020 2:11 pmnot vested
Low Risk High Return (10) – PMB Technology (PMBT)
Summary
PMBT is banking on Silicon as an essential material for our future economy.
Silicon is the basic material for solar industry.
Tesla intends to replace cobalt with silicon for its batteries.
China alters global silicon supply demand balance as it pivots on environmental friendly policies.
These factors drove silicon price to a fresh 3-year high.
Majority own and manage by the Koon family, PMBT and PM are of the same playbook. More importantly when PM started off with less resources and market recognition in the past, today’s PMBT – leverage on experience acquired and the market respect from PM – earning will ramp up swifter.
Eventually share price trajectory will follow suit.
Description
Press Metal (PM) – one of the most efficient and lowest cost aluminium producer globally is a majority shareholder of PMB Technology (PMBT). Both companies are mange by the Koon brothers. In late 2019, PMBT disposed its aluminium business (to PM) to stay focus as a silicon provider.
Silicon metal is an important element added to various grades of aluminum alloys used in performance applications such as automotive components and aerospace products.
Silicon metal also is a critical raw material in the production of silicone compounds used in numerous products including sealants, adhesives, rubber gaskets, caulking compounds, lubricants, food additives, coatings, polishes, and cosmetics, among others.
In addition, silicon metal is the base material in the production of polysilicon, a purified form of silicon used in solar cells and semi-conductors.
In summary, Silicon demand will be driven by solar and electronics in many years to come, whilst supported by its widely adopted application in various industries currently.
Growth factors
Management and efficient Hydro power supply
The competitive advantage of the PM series of companies lies in its lean production cost. On top of the very capable management strength, the ultra-competitive position is because of its power procurement contract with Sarawak Energy i.e. Bakun Hydropower.
Aluminium and Silicon production requires substantial amount of power. Energy cost as a single cost component weights more than 40% of the total production cost. The availability of an efficient energy sources alone determines the survival rate of the business.
By securing the ultra-competitive Bakun hydropower supply contract – which is one of the lowest in the world, PM has and PMBT will emerge as one of the lowest cost producer in the world.
Meanwhile PMBT is already position at the middle to lower quartile of the global cost curve despite starting out as a green field player only in 2019. Further improvement is on sight.
https://klse.i3investor.com/blogs/tapda ... y_PMBT.jsp
Low Risk High Return (10) – PMB Technology (PMBT)
Summary
PMBT is banking on Silicon as an essential material for our future economy.
Silicon is the basic material for solar industry.
Tesla intends to replace cobalt with silicon for its batteries.
China alters global silicon supply demand balance as it pivots on environmental friendly policies.
These factors drove silicon price to a fresh 3-year high.
Majority own and manage by the Koon family, PMBT and PM are of the same playbook. More importantly when PM started off with less resources and market recognition in the past, today’s PMBT – leverage on experience acquired and the market respect from PM – earning will ramp up swifter.
Eventually share price trajectory will follow suit.
Description
Press Metal (PM) – one of the most efficient and lowest cost aluminium producer globally is a majority shareholder of PMB Technology (PMBT). Both companies are mange by the Koon brothers. In late 2019, PMBT disposed its aluminium business (to PM) to stay focus as a silicon provider.
Silicon metal is an important element added to various grades of aluminum alloys used in performance applications such as automotive components and aerospace products.
Silicon metal also is a critical raw material in the production of silicone compounds used in numerous products including sealants, adhesives, rubber gaskets, caulking compounds, lubricants, food additives, coatings, polishes, and cosmetics, among others.
In addition, silicon metal is the base material in the production of polysilicon, a purified form of silicon used in solar cells and semi-conductors.
In summary, Silicon demand will be driven by solar and electronics in many years to come, whilst supported by its widely adopted application in various industries currently.
Growth factors
Management and efficient Hydro power supply
The competitive advantage of the PM series of companies lies in its lean production cost. On top of the very capable management strength, the ultra-competitive position is because of its power procurement contract with Sarawak Energy i.e. Bakun Hydropower.
Aluminium and Silicon production requires substantial amount of power. Energy cost as a single cost component weights more than 40% of the total production cost. The availability of an efficient energy sources alone determines the survival rate of the business.
By securing the ultra-competitive Bakun hydropower supply contract – which is one of the lowest in the world, PM has and PMBT will emerge as one of the lowest cost producer in the world.
Meanwhile PMBT is already position at the middle to lower quartile of the global cost curve despite starting out as a green field player only in 2019. Further improvement is on sight.
https://klse.i3investor.com/blogs/tapda ... y_PMBT.jsp